Forecast and analysis

of 2022 China's graphite electrode market

present status and trend

1. Classification

Graphite electrode is a conductive material mainly used in iron and steel smelting. China's policy support and guidance for replacing converter steelmaking with electric arc furnace short-process steelmaking has promoted graphite electrode demand growth in China's steel industry. 

2. Market status

The output of graphite electrodes in China showed a rapid growth trend from 2017 to 2019, and the total output reached 801,000 tons in 2019, with an annual compound growth rate of 20.4%. In 2020, affected by industrial losses and epidemic, the output decreased slightly, down 4.4% year on year. In 2021, the production reached 1.09 million tons and the capacity utilization rate reached 59%, a significant improvement from 2020, but still at a low level. It's expected to reach 1.21 million tons in 2022.

The consumption of graphite electrodes in China showed an overall growth trend, from 443,600 tons in 2017 to 588,100 tons in 2020, with a compound annual growth rate of 9.86%. It's expected to reach 743,200 tons in 2022.

3. Development trend

01. Development of ultra-high power electrodes

The development of graphite electrode to UHP (ultra-high power) electrode is the future trend. With the increasing demand of UHP electric arc furnace, UHP graphite electrode will have further development space. Compared with RP (regular power) electric arc furnace, the large capacity UHP electric arc furnace has higher labor efficiency and lower comprehensive cost. With the increase of electric arc furnace power, higher requirements are put forward for the maximum allowable current of graphite electrode of electric arc furnace, and the maximum allowable current of graphite electrode directly depends on the diameter of graphite electrode.

02. Tend to short-process steelmaking

The direction of national industrial policy is clear, and the development of short-process steelmaking is the general trend. Electric furnace steel (short-process steelmaking) usually refers to the steel produced by electric arc furnace. Its characteristics of high efficiency, relatively small pollution and relatively low cost conform to the guidance of national environmental protection policies. As one of the main materials of electric arc furnace, the request for UHP graphite electrode is bound to further increase driven by demand. Contact us for more graphite electrode news and technical reports.